Can I cancel a cheque paid as a deposit on a horse the same day it was written?
My 21 year old sister paid a deposit by cheque for a foal. When she told me she had bought this foal I was very upset. She is a novice and unable to care for such an animal, she has nowhere to keep it and it is an entire male, meaning that she would have a young stallion on her hands which could potentially be extremely dangerous. I rang the seller within hours of the agreement but she was uncompliant in returning the deposit. The deposit was paid by cheque, can this then be cancelled? My sister has written to the seller and informed her in writing that she no longer wishes to proceed with the sale.
I believe the seller should have vetted my sister for her suitability in taking on an animal like this. I believe she had a responsibility towards the animal and its welfare as well as the person she was selling to. Does my sister have any rights in this matter?
Answers:
Not if the cheque was guaranteed by using a guarantee card! If a guarantee card was not used then there may be a chance if the bank is contacted before the cheque is cleared. The contract to buy the foal on the other hand is a different issue and if your sister signed anything this could be deemed to be a binding contract and the responsibility for the foal would be hers. See a solicitor for advise if the seller won't backtrack on the agreement.
Yes, the bank can stop the cheque, though it may charge a fee for doing so.
You have posted this question in Law and ethics, not Banking so I'm not going to talk about what a bank can do, I'm going to talk from a legal standpoint.
From what you have put above - No Don't.
There was a contract between your sister and the seller. Cancelling the cheque is a bad move. Speak to the seller and explain your concerns. If they are reputable then they will understand and if handled correctly be more likely to return the cheque.
To my fellow answerers - the cancelled cheque is all the proof most courts need to prove a contract did exist. The sister is over 18, and there is 'consideration'. There is no statutory cooling off period in effect unless the Horse was bought over the phone, or online - this would then be covered by the distance selling regulations.
Yes, you can cancel a cheque days after, but not once it has been cleared.
If the contract was not in writing, then it's not legally binding.
you could contact your bank and cancel the check, thus stopping payment. there shouldn't be any legal repercussions as long as there was no signed contract between your sister and the seller.
Yes. you can do. Only thing is that you have to inform both to whom you have given the cheque and to your bank to dishonour the cheque.
she can cancel the cheque but if she has signed something stating the horse is now hers I would inagine she would still be liable to pay for it.
Depends-you can cancel the cheque but do you have a receipt?
Does it say "non-refundable deposit?"if not then go ahead and cancel it!!xx
yes she can ring your bank tell them you have
wrote to the person and you want to cancel
the cheque.!!
You need to ring the bank to cancel the cheque immediately. You will be charged for the cancellation, but they will cancel it. You will then have to deal with the person the cheque was made out to - but I doubt if any action would be taken under the circumstances you describe. Give your sister a good talking to!!
the simple answer to this is YES stop the cheque the seller as no comeback whatsoever you have changed your mind and if you are in the UK entitled to change your mind if you wish to do so within certain time limits I dont know off hand what the time limits are but within one day is perfectly reasonable just stop the cheque you are within your rights
cannot understand some ppl on here saying you have entered into a contract what a load of bollocks you have changed your mind and no money as changed hands it only becomes a contract when money is exchanged and the goods are given.even if it is a contract you always have a reasonable time to withdraw without penalty in the UK.
IF you had paid in cash she could keep the deposit but you did not you gave a cheque instead stop the cheque as I have already said earlier
I agree that the seller should have been more responsible in checking your sister's suitablity but as far as the deposit is concerned your sister isn't entitled to get it back. That is the whole point of paying a deposit on something, we pay a deposit to say we intend to purchase something and if we decide not to go ahead with the purchase we therefor lose the deposit. That is why sellers pay a deposit. It would be the same if you booked a holiday and paid a deposit on that. If you then changed your mind about the holiday you would not be obliged to pay the outstanding amount but you would lose your deposit. Maybe losing the deposit will teach your sister a lesson the hard way and she may think in future before making such a serious decision. I think you should leave it at that and hope that she learns from it.
while yes you have a contract, no exchange of services or product has occurred IE the horse is still with the owner, so by breaching the contract what damage would occur to the seller?
well if you cancel the check their would be a fee by the bank on the seller and other checks may bounce, or you can tell the seller you want out, return the monies or sue in small claims, judge may find since the contract was canceled in few hours no product changed hands no loss to seller may just may side with your sister
You can cancel the cheque as long as you inform the seller. The bank will want to know you have done this before they stop the cheque. If there is not enough money in the account the cheque bounces which means the bank cannot honour it and the cheque is returned to you. That will not make the bank or the seller very impressed however inconvenienced. After that you have gained some time in how to deal with the seller.
Dr Green is right. Your sister has entered into a contract by handing over a deposit. Contracts, for the most part, do not have to be in writing. They can be implied, and handing over a cheque is implied.
Your sister needs face-to-face legal advice from a solicitor. The solicitor can ask questions of you sister and decide if there is a case for repudiating the contract. Your sister has, at least, mitigated further financial damage by telling the owner that she does not wish to proceed. You may find that a follow-up letter from a solicitor, requesting return of the deposit will have the desired effect. It all depends on how much the deposit was and how much it will cost the solicitor to write the letter.
Most people have answered that you can stop the cheque. That is true, but you must, absolutely must consider the legal action that the other party may take. It may up end up costing your sister a lot more than the stop cheque fee.
Dr. Green is correct.
Although you can stop the cheque (although if the cheque has already been negotiated it could be too late..even though the money may not have cleared her account, it may be in limbo and banks do not take responsibility for same) it is likely not her best choice. She has entered into a binding contract by handing over the deposit cheque. The cheque is a security to hold the animal and would likely be forefited if she does not proceed with the purchase. That is, in essence, the purpose of a deposit.
She can try speaking with the seller and explain her situation who may or may not be sympathetic.
Beyond that, she should speak to an attorney.
Your sister, on the facts you have outlined, has entered into a legally binding contract. Please, and no offence intended to those who do not understand, we enter into legally binding agreements day in and day out, in English law the only contracts that have to be evidenced in writing are those relating to the sale of land / house. Yes writing makes it easier to prove there was a contract but going further, stopping the cheque would be pretty conclusive evidence that your sister was going to repudiate / renege on the deal. That would allow the seller to anticipate and immediately start action to mitigate her losses. IE offer the horse for sale at whatever she can get, and not necessarily the price your sister agreed to pay for it, and, then sue you sister for the losses, including re advertising it etc. Best you can do, as already suggested is to be a little bit humble, explain how stupid you've been, hope she'll understand and ask her to re offer the horse and be prepared to make up the shortfall. I'm sorry but at 21yrs of age it's time to take responsibility for the consequences of letting her heart rule her head.
A little learning is a dangerous thing. Some of these answers will cost you dear.
Listen to Dr Green.
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